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Wednesday, September 05, 2012

E-Learning Funding Models Analyzed by Katie Ash


Katie Ash writes, "Just as the size, scope, and type of virtual school options available vary widely from state to state, so too do the methods of paying for them. For instance, the costs associated with operating a full-time virtual school are much different from the costs of providing supplemental online courses, which consequently need a much different funding formula."

While similarities in finance mechanisms exist between states, many choose to use a combination of those methods or create tailored policies that address specific state environments. But while the methods vary, advocates for online education agree that some models best support the growth and financial stability of virtual schools.

To begin with, the money should follow the student, advocates say. That method is the only way to make sure virtual schools are not limited in the number of students that can enroll.

In addition, proponents say, since virtual schools often provide more flexibility—allowing students to work at their own pace, often outside of regular school hours—the funding approach should also reflect such flexibility. Funding based on such traditional methods as seat-time or average daily attendance can be a problem, they say.

A few states, such as Florida and Utah, have begun tying funding for virtual schools to student outcomes instead of seat-time to better fit the structure of online education.

While it is hard to categorize how virtual schools are financed because of the myriad factors that go into such formulas, the following is a breakdown of the more common methods of funding, according to the Vienna, Va.-based International Association for K-12 Online Learning and the Durango, Colo.-based Evergreen Education Group, which were the primary sources for this analysis. Keep in mind that many states use a combination of methods.
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Source: Education Week